A unique view of the US: Janus Henderson Investors

Jeremiah Buckley, CFA

Portfolio Manager

17 Oct 2024
4 minute read

Janus Henderson Investors (JHI) has a long legacy of investing in North American equity. Janus Capital Group was a US-focused investment house prior to its merger with Henderson Global Investors in 2017.

JHI currently has $183bn Americas equities AUM. Our North American equity team emphasises sector-based expertise and has 35 analysts split into 7 sector specialisms. As of August 2024, the team is managing The North American Income Trust.

How we find stocks we like in North America

Company insights – we seek to draw deep insights into businesses from frequent interactions with company management. We also aim to interact with a company’s products or services as a consumer where possible, to sense check the information we are given.
Understanding industry trends – we liaise with industry experts who are independent from the companies we invest in to gain our own understanding of their markets. We also use our own trusted data sources to enhance this understanding. As a global company, we are able to use information and insights from colleagues around the world to analyse competitors listed elsewhere, where relevant.
Detailed financial modelling – our company valuations are based on five-year forecasts for earnings and cashflows. We also look at past earnings volatility – the amount earnings differ year-to-year – depending on different market conditions.

How we invest for North American income

Investing for dividends today and tomorrow: we use the insights described to identify companies with the growth trajectory to offer yields into the future, alongside those paying income today. This means we have a combination of some high yield (paying dividends) companies and some high growth companies.
Being selective in a land of opportunity: the trust’s portfolio is typically around 45-55 stocks. These represent the best opportunities we believe we can find in the market at any one time. Our rigorous analysis helps us narrow down our potential investments to this list.
Income from innovation: we aim to take advantage of the US’s innovative business culture. The US market has posted faster dividend growth than any other region over much of the last decade and pays a third of the world’s dividends. We believe that US innovation fuels its income and invest accordingly.

Click here to find out more about The North American Income Trust

Glossary

Dividend

A variable discretionary payment made by a company to its shareholders.

Earnings per share (EPS)

EPS is the bottom-line measure of a company’s profitability, defined as net income (profit after tax) divided by the number of outstanding shares.

Portfolio

A grouping of financial assets such as equities, bonds, commodities, properties or cash. Also often called a ‘fund’.

Valuation metrics

Metrics used to gauge a company’s performance, financial health and expectations for future earnings, eg. price to earnings (P/E) ratio and return on equity (ROE).

Volatility

The rate and extent at which the price of a portfolio, security or index, moves up and down. If the price swings up and down with large movements, it has high volatility. If the price moves more slowly and to a lesser extent, it has lower volatility. The higher the volatility the higher the risk of the investment.

Yield

The level of income on a security over a set period, typically expressed as a percentage rate. For equities, a common measure is the dividend yield, which divides recent dividend payments for each share by the share price. For a bond, this is calculated as the coupon payment divided by the current bond price.

Disclaimer

Janus Henderson Fund Managers UK Limited was appointed as the AIFM of the North American Income Trust with effect from 1 August 2024. Prior to that date, the North American Income Trust’s AIFM was Aberdeen Fund Managers Limited and all information contained in this document should be considered accordingly

Not for onward distribution. Before investing in an investment trust referred to in this document, you should satisfy yourself as to its suitability and the risks involved, you may wish to consult a financial adviser. This is a marketing communication. Please refer to the AIFMD Disclosure document and Annual Report of the AIF before making any final investment decisions. Past performance does not predict future returns. The value of an investment and the income from it can fall as well as rise and you may not get back the amount originally invested. Tax assumptions and reliefs depend upon an investor’s particular circumstances and may change if those circumstances or the law change. Nothing in this document is intended to or should be construed as advice. This document is not a recommendation to sell or purchase any investment. It does not form part of any contract for the sale or purchase of any investment. We may record telephone calls for our mutual protection, to improve customer service and for regulatory record keeping purposes.

Issued in the UK by Janus Henderson Investors. Janus Henderson Investors is the name under which investment products and services are provided by Janus Henderson Investors International Limited (reg no. 3594615), Janus Henderson Investors UK Limited (reg. no. 906355), Janus Henderson Fund Management UK Limited (reg. no. 2678531), (each registered in England and Wales at 201 Bishopsgate, London EC2M 3AE and regulated by the Financial Conduct Authority), Tabula Investment Management Limited (reg. no. 11286661 at 10 Norwich Street, London, United Kingdom, EC4A 1BD and regulated by the Financial Conduct Authority) and Janus Henderson Investors Europe S.A. (reg no. B22848 at 78, Avenue de la Liberté, L-1930 Luxembourg, Luxembourg and regulated by the Commission de Surveillance du Secteur Financier).